Buss Funds finance 200,000 Containers on US Bond Market

A-Rated by Standard & Poor′s / Volume: 280 million US Dollars / First securitization ever of similar container portfolio / 8,300 fund investors benefit from lower interest rates / „Transaction accounts for quality of the...

Buss Funds finance 200,000 Containers on US Bond Market

Hamburg. Three container funds issued by Buss Capital have financed a portfolio of no less than 200,000 containers on the US bond market. The joint management company of Buss Global Container Funds 9, 10 and 11 issued two bonds through a special-purpose entity with a total volume of almost 280 million US Dollars. Both bonds have been A-rated by Standard & Poor’s. The average interest rate was at 3.04 %, which is lower than that of the latest transactions accomplished by big container leasing companies. The tranches have a weighted maturity of nearly two respectively nearly four years. Buyers of the bonds were major institutional US investors like insurance companies or pension funds. Through this transaction the management company of the three Buss funds is able to cut their effective annual interest rates by approximately 0.6 percentage points. BNP Paribas was the leading consortium member, DVB Bank and ING Bank supported the deal. Between 2010 and 2012 about 8,300 German private investors got into the three funds. The management company’s equity amounts to approximately 225 million US Dollars.

Dr. Dirk Baldeweg, Managing Partner of Buss Capital: "Standard & Poor's A-rating accounts for the quality of the container portfolio. The low interest rates prove that institutional investors consider the container leasing business as stable and secure." In several respects this transaction represents a real debut: It was the first securitization of a container portfolio including two tranches with different maturities, with third parties as equity owners (the fund investors) and with six different container leasing companies acting as operating lessors. So far only large container leasing companies have financed their own container portfolios in individual tranches on the US bond market with recent interest rates ranging between nearly three and five percent.

Dr. Dirk Baldeweg: "A prerequisite for the container securitization was our strong professional commitment – both on the part of our team in Singapore and our banking partners. The subdivision into two partial bonds with different maturities helped to achieve lower interest rates for the fund investors. This enabled us to also appeal to US investors with a rather short-term investment horizon." Altogether Buss Capital expects that throughout the entire maturity term the securitization will improve the management company’s result by at least six million US Dollars.

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Info Buss Capital

Buss Capital is an issuing house for closed-end funds that focus on shipping, logistics and real estate. To date, Buss Capital has issued 37 public investments in which approximately 27,500 investors have invested roughly 870 million Euros.  The investment volume totals 2.3 billion Euros. Buss Capital is headquartered in Hamburg and has a subsidiary in Singapore. The issuing house is part of the Hamburg Buss Group founded in 1920.

Press contact
Anke Dissel
Head of Corporate Communications
Buss Capital GmbH & Co. KG
Am Sandtorkai 48
20457 Hamburg
Phone: 040 3198-1628
Fax: 040 3198-1648